Submitted by: Jack in the Box, Inc.
Categories: Corporate Governance
Posted: Feb 10, 2003 – 11:00 PM EST
Feb. 10 /CSRwire/ -
ISS developed the Corporate Governance Quotient ranking system to help institutional investors evaluate the quality of corporate boards and the impact their governance practices may have on performance. Ratings are calculated on 61 factors in eight categories of governance-related issues, including: board of directors, audit, charter and bylaw provisions, laws of the state of incorporation, qualitative factors, ownership and director education. A company is scored individually and ranked relative to its industry and peer group.
Said Chairman and CEO Robert J. Nugent: “In light of recent scandals that exposed weaknesses in corporate governance systems and rattled the confidence of investors, public companies must demonstrate a responsibility to act on behalf of their shareholders. Though we’ve been strong proponents of management accountability and have maintained strong governance practices for years, the ratings that Jack in the Box received from ISS confirm the importance we place on operating ethically and with the best interests of our shareholders in mind.”
A 2002 study released by McKinsey & Company found that corporate governance is now an established investment criterion, and investors actively seek out companies with strong governance programs. According to the study, investors are willing to pay an average premium of 14 percent for the stock of well-governed companies. In addition, S&P recently linked corporate governance to credit quality, noting that weak governance can undermine creditworthiness in several ways and should serve as a red flag to credit analysts.
Along with the high ISS ratings, Jack in the Box has received other accolades for its corporate governance program. In March 2002, Investor Relations Magazine honored the corporate governance practices at Jack in the Box as the best among all small-cap companies, which comprises U.S. stocks with a market value of $2.5 billion or less.
Founded in 1951, Jack in the Box Inc. is among the nation’s leading hamburger chains. The San Diego-based company operates or franchises more than 1,880 quick-service restaurants in 17 states and has 44,000 employees. For more information, visit www.jackinthebox.com.
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